Optimist Outlook: In The Next 6 To 12 Months, Half Of VC Investors Anticipate A Resurgence In Start-Up Financing.

According to a Redseer report, 1,000–1,200 agreements are anticipated to be completed in 2024.

According to a Redseer Strategy Consultants poll, 50% of venture capital (VC) investors are optimistic about the resurrection of start-up investment in the next 6–12 months, and 17% believe it will happen much sooner. The remaining people think that the financial winter won’t end for at least another 12 to 18 months.  

According to predictions of funding trends, funding in 2023 is projected to continue the pattern witnessed between 2017 and 2020, falling between $12 and $15 billion. According to the analysis, a positive trend in 2024 might reach $15–20 billion.

According to PwC’s ‘Startup Deals Tracker—CY22’ report, Indian start-ups raised close to $24 billion in 2022, a 33% reduction from CY21. Additionally, there is now more money accessible to venture capitalists than ever before. 

According to a recent research by Bain & Company, private capital dry powder will continue its ten-year growth trend and reach a new high of $3.7 trillion in 2022. At the end of 2022, buyout dry power was $1.1 trillion and growth fund dry powder was slightly under $350 billion.

Redseer anticipates that the majority of this year’s acquisitions will be seed or early-stage, continuing the pattern seen since CY17.  

A partner at Redseer named Kanishka Mohan claims that among the 1,000+ start-ups the consultancy evaluated, there are ten standout emerging themes including beauty and personal care (BPC),Personal loans, customer relationship management (CRM), industrial e-commerce business-to-business e-commerce industry (eB2B), insurtech, DevOps, and finance are some of the industries represented by this report. As the decade goes on, according to Redseer, these industries will serve as the nursery for the subsequent unicorn generation.

According to the findings of the partner, the start-up ecosystem in India has rapidly matured over the last five years. Over the past four years, the number of registered start-ups has increased nine times, from around 10,000 in CY18 to almost 90,000 in CY22.

The number of active investors has increased at the same time, going from 400 in CY 2018 to almost 900 in FY 22. Notably, a wider variety of international investment sources have been added to the growing number of investors within the nation. The USA, EU, UAE, and Japan collectively account for 5% of the entire world financing and 20% of the whole APAC investment landscape, making them the major sources of funding for Indian start-ups.